It lies about 2.3 miles (4 km) south-east of Pateley Bridge, on either side of Fell Beck, a small tributary of the River Nidd.

In the Middle Ages Fell Beck was the boundary between the lands of the Archbishop of York (which became High and Low Bishopside) and the manor of Brimham held by Fountains Abbey (which became Hartwith cum Winsley).

[4] In the early 20th century there was a rope and twine business at Little Mill in Smelthouses.

The road from Pateley Bridge to Knaresborough historically passed through Smelthouses.

Under an Act of Parliament of 1759 a turnpike trust was formed to build a new toll road on the route.